During a special edition of the Isma Dean podcast held in a public piazza rather than the usual studio setting, Prime Minister Robert Abela focused on a series of policy proposals, with particular emphasis on succession law reform, alongside economic measures and fiscal policy.

A central announcement concerned a reform of succession law built around principles of social justice and practical outcomes. Abela stated that individuals who inherit property and choose to use it as their ordinary residence will be exempt from paying succession tax. He added that the same exemption would apply if the property is retained as a primary residence over a defined period.

In cases where inherited property is not immediately used as a residence, Abela explained that the current five percent tax would still apply, but payment would be deferred without interest until the property is sold or up to seven years after inheritance. He also stated that the value of the property for tax purposes would be fixed at the time of inheritance, providing certainty on future tax obligations.

Further measures announced include an increase in the threshold for tax free property donations during a person’s lifetime, extending this to properties valued up to one million euro. He also outlined corrections to existing anomalies in the system, including cases involving elderly individuals in care homes, situations where parents inherit from their children, and cases involving spouses inheriting additional property beyond the primary residence. He also referred to measures supporting families investing in property for their children, including targeted tax relief.

Abela contrasted these proposals with those of the opposition, particularly the proposal to remove succession tax entirely, stating that this could in practice leave people worse off. He explained that while the removal of the five percent succession tax may appear beneficial at face value, the default tax rate applied when a property is eventually sold would still apply.

He outlined that under the current system, an inherited property valued at €300,000 would incur €15,000 in succession tax, with an additional €6,000 payable if the property is later sold at €350,000, resulting in a total tax of €21,000.

By contrast, he stated that under the opposition’s proposal, no succession tax would be paid initially, but if the property is later sold, the default rate of eight percent would apply on the full value, resulting in a tax of €28,000. He said this represents a higher overall tax burden and described the proposal as one that may appear attractive but contains a hidden cost.

Abela then reiterated the Superbonus measure, consisting of a one thousand euro annual payment, pro rata for part time workers, non taxable and recurring every year, and additional to existing benefits. He stated that the measure is designed to directly benefit individuals who would not gain from adjustments to tax bands, particularly those who do not fall within the tax-paying bracket.

Following this, Abela revisited what he described as a significant error in the opposition’s financial calculations. He referred to their proposal that 300,000 workers would each receive a minimum of €1,200 annually, stating that this would mathematically result in a substantially higher cost than the €110 million to €130 million they had indicated.

He contrasted this with the government’s approach, explaining that its calculations are based on approximately 200,000 eligible workers, making the measure financially viable and properly costed. He added that this figure excludes foreign workers who have been in Malta for less than five years.

Abela also pointed to what he described as a contradiction in the opposition’s position, noting that while criticism had been directed at foreign workers, their inclusion appeared necessary for the opposition’s own calculations to reach 300,000 beneficiaries. He stated that this reflects a lack of coherence in their position.

He said that these inconsistencies raise serious questions about the opposition’s credibility, fiscal discipline, and capacity to manage the country’s finances, emphasising that all government proposals are fully costed and aligned with established economic parameters and European fiscal rules.

In addition, Abela referred to a number of other measures aimed at supporting different groups. These include tax benefits for young people entering the workforce, including a tax free threshold on initial income, as well as support schemes for small and medium sized enterprises aimed at improving liquidity. He also mentioned revised arrangements for self employed individuals, structured in a way that does not negatively impact pension contributions, with support being provided through alternative mechanisms such as cash grants.

On the broader economic context, Abela stated that Malta’s performance has been recognised internationally, including by Moody’s, and attributed current fiscal flexibility to sustained economic growth in recent years. He stated that Malta has managed to navigate multiple global crises, including the pandemic, geopolitical conflicts, and the energy crisis, while maintaining economic growth and stability. He emphasised that all measures announced are aligned with European fiscal frameworks and designed to remain within deficit parameters.

He also referred to ongoing efforts to attract high value investment, citing the Vantive project in the medtech sector as an example. The investment, valued at one hundred and fifty million euro and expected to create two hundred and fifty jobs, was presented as evidence of Malta’s attractiveness due to political stability, long term vision, and a strong economic framework.

Abela linked this direction to the importance of education and skills development, particularly in areas such as science, technology, artificial intelligence, and software. He noted increasing participation by young people in these fields and stated that government policy is focused on supporting this trend through investment in training and opportunities.

Healthcare innovation was also highlighted, including developments that allow patients to receive dialysis treatment at home overnight. Abela indicated that such technologies are being considered for local implementation, with the aim of improving quality of life and enabling patients to maintain more normal daily routines.

Addressing criticism that the electoral campaign is becoming a competition over financial incentives, Abela stated that government proposals are based on feasibility and detailed costing, and are intended to be fully implemented. He emphasised the importance of credibility and experience in economic management, particularly in the context of ongoing global uncertainty.

In concluding remarks, Abela referred to continued engagement with the public and stated that policy direction will remain focused on economic stability, targeted support, and long term planning. He added that recent years of crisis management have reinforced the importance of maintaining a resilient economy supported by disciplined and credible decision making.